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Re:The Tax Haven That's Saving Google Billions by lionhearted on Thursday October 21, 2010 @10:29AM (#1815493)
> That seems absurd by free enterprise standards and I am genuinely curious to know why refusing to do this would be called "evil."

When taxes come up, it tends not to be a well-thought, cohesive, pros-and-cons thing. It tends to be an emotional/identity thing. Some people think and almost always argue it'd be a good thing if companies gave more money over to governments.

Me, I think it's very good for the world on every level for Google to pay less taxes. They're hiring the best people, acquiring companies and giving liquidity to founders, run amazing free services (search, Gmail, Google Earth, Google Maps, Google Finance, Google News, Google Voice, Google Reader, Feedburner, many many others). Also, they're internally investing in energy and robotics like the auto-driven cars thing, and their high level personnel seem to invest really well too (like in genetics research). Anyone who thinks that England would do a better job with the money than Google hasn't been to England, or hasn't thought this through very much.

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @11:37AM (#1815896)
The NHS employs a lot more people than Google and carries out research and development into saving people's lives. Sure, what Google does is great, but I'm really not convinced that thinking up ever more creative outlets to display targeted advertising is necessarily a better outcome for society than spending the money on the UK public sector, which has many worthwhile projects of its own. I'm going to go out on a limb here and say that sometimes multimillion sums are better spent on schools and hospitals than buying startups to wind up (big companies, like governments, have a tendency to overpay and make some blunders). The original article pointed out that Google owed its very existence to that paragon of state-sponsored inefficiency: the research university.

Calling it "evil" to carry out their fiduciary duty by legally shifting tax burden to the less well-off might be a stretch, but it's equally a stretch to suggest that we're better off because Google pays less tax. It's not as if they'd be dirt poor if they paid a tax rate comparable to that of profitable startups...

Re:The Tax Haven That's Saving Google Billions by tkahn6 on Thursday October 21, 2010 @12:33PM (#1816192)
but it's equally a stretch to suggest that we're better off because Google pays less tax

In absolutely no way is it a stretch to say that and I'm terribly surprised you have any upvotes. Are you aware of how many services Google provides for free that make my life (and probably yours) better?

Google Search

Google Maps

Android

Google Navigation (on Android)

Google Patent Search

Google Book Search (Working with libraries to digitize old books)

Gmail

Google Translate

Google Code

Google Summer of Code

Thousands of tech talks made available online

Google Docs

Google Calendar

and a lot more...

One of the core tenets of capitalism is that the success an innovation of private companies benefits the public. This isn't true in all cases, but most certainly it is in the case of Google.

sometimes multimillion sums are better spent on schools and hospitals

Do I even need to cite a source that says throwing more money at the public school system won't stop them them being so shitty? That's a pretty common thing to hear now -- especially on HN, and I very much think it's true (from personal experience).

And with hospitals, what exactly do you want more money for? More beds? More nurses? More money for the uninsured? Are you sure that will fix our nation's healthcare problem? I'm not an expert by any means whatsoever on this topic, but as far as I know, the quality of America's healthcare system, bad or good, is largely a function of governmental policy.

Re:The Tax Haven That's Saving Google Billions by jamii on Thursday October 21, 2010 @02:19PM (#1816778)
> Are you aware of how many services Google provides for free that make my life (and probably yours) better?

Are you aware of how many services the NHS provides for free which make my life better, despite being cripplingly underfunded?

I'm not saying that google are evil for avoiding taxes, bit neither am I convinced that I wouldn't be better off if the money made its way into my governments hands.

Re:The Tax Haven That's Saving Google Billions by trevelyan on Thursday October 21, 2010 @07:36PM (#1817911)
You're not saying much of anything. Health care is good and killing people in Iraq and Afghanistan is bad. Google doesn't have much to do with one or the other. Nor is the company responsible for the distributional choices British taxpayers make when they elect government officials who decide to underfund public health in favour of blowing stuff up.

Why is this even a point under discussion?

Re:The Tax Haven That's Saving Google Billions by blhack on Thursday October 21, 2010 @06:14PM (#1817678)
I'm not. Could you list some, please?
Re:The Tax Haven That's Saving Google Billions by olliesaunders on Thursday October 21, 2010 @07:00PM (#1817798)
This is just for England but you should get the picture: http://www.nhs.uk/NHSEngland/AboutNHSservices/Pages/NHSServi...
Re:The Tax Haven That's Saving Google Billions by ohyes on Friday October 22, 2010 @10:38AM (#1819836)
"In absolutely no way is it a stretch to say that and I'm terribly surprised you have any upvotes. Are you aware of how many services Google provides for free that make my life (and probably yours) better?"

Not free. All of those things are paid for by Ads. Google is a for-profit company making billions of dollars.

There is nothing evil about doing legal things to pay less taxes (large public corporations are practically required to); but that doesn't mean that the government shouldn't fix the exploit. If i'm paying 30% taxes on my minimal salary, i think Google can cough up a bit more than 1% on its billions. (Billions which are made possible by government infrastructure, research, etc).

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @01:08PM (#1816408)
Which of the above services do you think wouldn't exist if Google avoided less tax?

There's an opportunity cost of private companies paying less tax too - either someone else pays more tax which marginally decreases their ability to be productive and enterprising or something purportedly socially beneficial doesn't get paid for. Even coupled with inspired management, the profit motive doesn't ensure that an acquisition of say, Dodgeball for the price of a hospital wing, is an optimal use of resources.

Re:The Tax Haven That's Saving Google Billions by zacharypinter on Thursday October 21, 2010 @02:10PM (#1816734)
On a similar note: I'd trust Google to put its profits to more effective use than any government.
Re:The Tax Haven That's Saving Google Billions by andreyf on Thursday October 21, 2010 @05:23PM (#1817498)
Which of the above services do you think wouldn't exist if Google avoided less tax?

Easy: how many of the above services are profitable? The more taxes Google is forced to pay, the less they can invest in experimental and long-term projects.

Re:The Tax Haven That's Saving Google Billions by tkahn6 on Thursday October 21, 2010 @01:59PM (#1816666)
Which of the above services do you think wouldn't exist if Google avoided less tax?

You're going to have to explain to me how this is relevant.

What Google is doing is legal which means that you're trying to make this an argument about ethics. My point is that Google provides real value to millions of people around the world and has the resources, both human and monetary, to make real progress in many areas of technology which then benefit you and me. It benefits me more to have the money stay at Google than go to a failed school system or failing healthcare system.

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @03:37PM (#1817097)
We seem to be going round in circles here. As someone who has received healthcare and education for free courtesy of the UK government I find the earlier claim that this is of less value to me than a search engine and associated apps, even though I use them daily to be fairly ridiculous. Taking your arguments about us being better off with Google managing more money to their logical conclusion, would you prefer to pay your taxes directly to them, without any say in what they spend their money on?

Continuing to restate that Google provides a significant amount of value as acknowledged in my original post (and profiting directly from most of the value-adding-services to the extent that such services would continue to be invested in at a much higher tax rate) fails to defend the original bold assertion that "Anyone who thinks that England would do a better job with the money than Google hasn't been to England". As I'm a British citizen who has not only been to England but actually lives there and uses both Google and our government funded services, I feel I'm in a good place to dispute that claim.

Right now the principal problem with UK public services is a shortage of money; not a problem for Google and their profit-generating services. Google is not going to die if it takes them a little longer to generate shareholder return; people are going to die if they don't get hospital beds. Believing in the benefits to humanity from successful, innovative free enterprises != believing they and their investors should keep all the money.

Moreover even if one accepts the claim that Google and people smart enough to invest in Google are on average better at allocating resources equitably than the government I think it could be argued to be ethically dubious for them to pay lower tax rates than less profitable companies with equally ambitious and beneficial goals. Someone still has to foot the tax bill

Re:The Tax Haven That's Saving Google Billions by bonaldi on Thursday October 21, 2010 @03:16PM (#1817023)
By adopting the "Don't be evil" motto Google makes this about ethics. If you say that you are going to hold yourself to an ethical standard, that means you will be judged by your ethics, not by your adherence to the letter of the law.

But really, the continuing argument that because you like Google Maps it's therefore better that Google gets to keep all of its tax euros out of the hands of underfunded public services is close to incoherent.

Unless you can show that those services are in the same sort of existential danger as high-end cancer treatment is in the UK, the argument is specious.

Re:The Tax Haven That's Saving Google Billions by tkahn6 on Thursday October 21, 2010 @03:43PM (#1817121)
But really, the continuing argument that because you like Google Maps it's therefore better that Google gets to keep all of its tax euros out of the hands of underfunded public services is close to incoherent.

Unless you can show that those services are in the same sort of existential danger as high-end cancer treatment is in the UK, the argument is specious.

a. I did not say that Google shouldn't pay any taxes.

b. Whether you believe something to be 'underfunded' is a matter of perspective.

c. Not funding cancer research is not equivalent to not doing good or creating value.

I think you do have a point in that Google's slogan does make this about ethics. I still maintain that Google can do more good with more efficiency than any government.

Re:The Tax Haven That's Saving Google Billions by bonaldi on Thursday October 21, 2010 @03:55PM (#1817168)
I still maintain that Google can do more good with more efficiency than any government.

That's fine, but there are plenty of other people who disagree with the assertion. If the money is in the hands of the government, at least those other voices get a say in how it is spent.

The opportunity cost for anything you spend $3bn on is very high. A government could choose to spend it on cancer research or space ships. Google can really only spend it on a very narrow range of products -- and can't combine it with other serious numbers required to do the really heavy lifting, like that required to fix the disastrous public plumbing in the US.

If Google paying its taxes would mean that it couldn't do all the stuff it currently is, that's one thing. But they've got $33bn sitting in the bank. They can more than afford to pay their taxes and continue creating Wave and AdWords.

Re:The Tax Haven That's Saving Google Billions by kragen on Thursday October 21, 2010 @06:09PM (#1817660)
If we're going to be strictly factual about it, Google is actually spending money on cancer research and spaceships; http://www.columbia.edu/cu/news/oncampus/08/10/google.html describes one of a number of grants that are going to researchers on, among other things, cancer; Larry Brilliant himself suffered from thyroid cancer. Also, Google bought SpaceShipOne, which is now on display at the Googleplex. Presumably Scaled Composites is using the proceeds from the sale for spaceship research. Sergey is going to space in a private space flight next year, assuming all goes well: http://www.spaceadventures.com/index.cfm?fuseaction=news.vie...

There are many other investments in cancer research and space travel being made by individual Googlers.

However, it is perhaps more to the point that both Google Search and Google Academic are crucial research tools for medical research and for aerospace engineering, as for many other fields.

Both directly and through its employees, Google is also funding substantial applied research in crucial areas such as renewable energy production, genomics, public health, and ground transportation.

I don't know what you mean by "disastrous public plumbing in the US". My experience with US municipal water supplies and sewers during the 29 years that I lived there was that they were inexpensive, reliable, safe, and efficient. My experience with water supplies (and sometimes sewers) in other countries has been much worse.

A personal note: I haven't ever tried to work for Google because of, essentially, ethical concerns: I am in danger of having to live in a world where a large fraction of our communications are intermediated by a single company, and I think Google's cultish secrecy is corrosive to the values of Silicon Valley. However, I think Google should only be dinged for its real faults, not imagined ones.

Re:The Tax Haven That's Saving Google Billions by bonaldi on Thursday October 21, 2010 @06:23PM (#1817701)
Sorry, that wasn't really the intention of my example, which was to show the range of government spending. Ultimately, though, it boils down to this: Google isn't doing anything with this money, except earning less than 1% interest on it.

Google can afford to pay taxes in the countries in which it operates. That it does not, while obviously legally defensible, reflects poorly on the other work it does.

Public plumbing: the US infrastructure is badly out of date, and unable to meet most projected demands for expansion. The US Geological survey projects that 1.7 trillion gallons of water are lost through leaks in the system each year -- about $2.6bn in value. http://www.epa.gov/awi/distributionsys.html

Re:The Tax Haven That's Saving Google Billions by nitrogen on Sunday October 24, 2010 @10:21PM (#1828171)
The fact that Google isn't doing anything with the money doesn't mean the money isn't being put to use. If the money is in standard banks, it is being used to fund mortgages and credit cards. If it's invested in the market, it is being used by other companies to expand their businesses. If it's invested in municipal bonds, it is allowing cities to develop infrastructure. If it's in various countries' treasury bonds, it is funding those governments directly (since many countries are funding themselves on debt instead of or in addition to raising taxes).
Re:The Tax Haven That's Saving Google Billions by kragen on Friday October 22, 2010 @10:19AM (#1819767)
I don't know why you think paying taxes is morally commendable. So far Google hasn't, as far as I know, invaded any countries or funded any coups.

$2.6 billion per year is about US$9 per person. Another point of comparison, if you're worried about conservation of fresh water, is that the Mississippi River discharges 110 trillion gallons of fresh water per year into the Gulf of Mexico, where it turns brackish. So the plumbing doesn't sound like a disastrous problem to me, particularly compared with problems like 1% of the adult US population being imprisoned, companies being raided for selling chemistry kits to kids, a decaying passenger train system that commonly delivers passengers several hours late, and government bailouts to pay the bonuses of the bankers who wrecked the economy.

Re:The Tax Haven That's Saving Google Billions by codexon on Thursday October 21, 2010 @03:27PM (#1817072)
Google's only unique offering is search

All the other stuff, maps, email, translate, etc... were incremental improvements of already available and competitive free services.

You also neglected to list the dozens of flops that Google undoubtly spent millions, perhaps billions on. Remember Wave, Answers, Jaiku, Dodgeball, etc...? And how much of those billions of unpaid taxes went to buying out the competition and thus reducing the capitalist drive for improvement?

http://en.wikipedia.org/wiki/List_of_acquisitions_by_Google

Re:The Tax Haven That's Saving Google Billions by danenania on Thursday October 21, 2010 @05:39PM (#1817546)
From an economic perspective, that's an argument in favor of Google. When private companies miscalculate or mismanage, their products and investments don't make profits and fail, thus freeing up resources for better uses. When government programs are poorly run, they go over budget and often use that as a justification for asking for MORE money. There is no incentive to be efficient or diligent when someone else foots the bill.
Re:The Tax Haven That's Saving Google Billions by codexon on Thursday October 21, 2010 @06:02PM (#1817642)
You make it sound like no government program has ever been cut or removed. You also make it sound like private companies can do no wrong, and that customers always act in their best interest like rational agents. This is a fallacy learned in every ECON 101 class.

Millions, even billions of dollars are siphoned off in people buying useless products like Acai Berry or junk bonds labled as AAA that do nothing for society or even themselves. Now imagine what other useless industries these people would invest given that a company like Google could make so many flops? That is essentially X times more waste where X is the percentage that these junk dealers reinvest.

As someone said more eloquently than I have: "Why do I need your government nanny state telling me how to build my cars? If people who drive my cars die, then they won't buy more cars. THE FREE MARKET WORKS PEOPLE."

Re:The Tax Haven That's Saving Google Billions by noglorp on Friday October 22, 2010 @06:14AM (#1819146)
Hey now, just because anti-oxidants aren't magical doesn't mean they aren't freakin anti-oxidants!
Re:The Tax Haven That's Saving Google Billions by olliesaunders on Thursday October 21, 2010 @07:02PM (#1817803)
You almost seem to be proposing that, had this loophole not been available, you would have Google government funded for the same amount because the services Google provides are better than those provided by the government.
Re:The Tax Haven That's Saving Google Billions by Super_Jambo on Thursday October 21, 2010 @04:38PM (#1817343)
Here in the UK, we do not have a failing healthcare system, I would like to see corporations not waste their money paying people to do utterly non-productive work (like finding and exploiting tax loop holes).
Re:The Tax Haven That's Saving Google Billions by alextgordon on Thursday October 21, 2010 @06:01PM (#1817638)
And with hospitals, what exactly do you want more money for? More beds? More nurses? More money for the uninsured? Are you sure that will fix our nation's healthcare problem? I'm not an expert by any means whatsoever on this topic, but as far as I know, the quality of America's healthcare system, bad or good, is largely a function of governmental policy.

Just in case you hadn't noticed, the post you are replying to is about the NHS, which is not affected by US government policy.

Re:The Tax Haven That's Saving Google Billions by captain_obv on Thursday October 21, 2010 @01:13PM (#1816428)
"If you are not paying for it, you are the product".
Re:The Tax Haven That's Saving Google Billions by cvg on Thursday October 21, 2010 @04:04PM (#1817210)
Who said this thoughtful quote?
Re:The Tax Haven That's Saving Google Billions by joxenford on Thursday October 21, 2010 @01:43PM (#1816585)
To say any of these things have made anyones life better is quite a stretch. Has gmail improved your quality of life? Really? Choose your words carefully. Indoor plumbing and electricity made life better. Gmail has not. Your email was fine before Gmail.

And Google should pay their F-ing taxes. I do.

Re:The Tax Haven That's Saving Google Billions by CWuestefeld on Thursday October 21, 2010 @03:43PM (#1817123)
Everyone that uses gmail (or any other Google service) does so because it's better (in some way that we can't know) than the alternatives. The very fact that people have chosen to use it rather than those alternatives means that it has made their lives better.

And Google should pay their F-ing taxes. I do.

By all accounts, Google is paying the taxes they're legally obligated to. If you don't like the way those obligations play out, then you ought to be talking to your legislators, the ones who are architecting byzantine tax systems. Their efforts to control our behavior, pander to buy votes, etc., by giving preferential treatment to some, is what created the problem.

Re:The Tax Haven That's Saving Google Billions by joxenford on Wednesday October 27, 2010 @09:15AM (#1838414)
I do talk to my legislators. Unfortunately I don't have a lot of spare cash to bribe my legislators into making the laws work for me becasue I'm paying my taxes.
Re:The Tax Haven That's Saving Google Billions by olliesaunders on Thursday October 21, 2010 @07:05PM (#1817813)
The point of this comment is to provide perspective. Of course GMail has contributed to an improvement in life but compared to these other things the improvement is small. We are also assuming that had GMail not been created another company couldn't do it.
Re:The Tax Haven That's Saving Google Billions by tkahn6 on Thursday October 21, 2010 @02:09PM (#1816730)
Has gmail improved your quality of life? Really?

The ability to access my email from anywhere, organize, and quickly search through thousands and thousands of emails in seconds has improved my quality of life. Maybe not as much as indoor plumbing, but it has.

Re:The Tax Haven That's Saving Google Billions by codexon on Thursday October 21, 2010 @04:02PM (#1817205)
Your enthusiasm for gmail has blinded you to the reality. Sure it might be the best thing to you since sliced bread, but in every market estimate, gmail still trails behind hotmail and yahoo mail which means that for most people, gmail is not a radical improvement.

http://www.quantcast.com/profile/trafficGraph?wunit=wd%3Acom...

http://tctechcrunch.files.wordpress.com/2009/01/gmailvs-hotm...

Of course, since you are only a college freshman, I don't blame you for not knowing that there were dozens of serviceable webmail clients long before the existence of gmail.

Re:The Tax Haven That's Saving Google Billions by anthuswilliams on Thursday October 21, 2010 @05:08PM (#1817441)
What does his being a college freshman have to do with the argument? I call ad hominem.
Re:The Tax Haven That's Saving Google Billions by codexon on Thursday October 21, 2010 @05:13PM (#1817472)
It has everything to do with the argument.

He thinks that Google invented or revolutionized webmail, maps, etc... when it is clear to anyone who's been on the internet for more than 8 years that they were only incremental updates.

Re:The Tax Haven That's Saving Google Billions by gthank on Friday October 22, 2010 @02:23PM (#1820807)
It's all subjective, but for me the usability enhancements of GMail are far, FAR more than evolutionary.
Re:The Tax Haven That's Saving Google Billions by andreyf on Thursday October 21, 2010 @05:27PM (#1817510)
It's curious that you mention college freshmen because GMail saves Universities boatloads of money in infrastructure costs.
Re:The Tax Haven That's Saving Google Billions by codexon on Thursday October 21, 2010 @05:40PM (#1817554)
I think it's curious that you would try and argue this.

Before Google sold gmail to colleges, my college and many others used squirrelmail and pine which was more than adequate. Any sizable college that had an IT department that could support email anyway.

Re:The Tax Haven That's Saving Google Billions by zooey on Thursday October 21, 2010 @04:06PM (#1817218)
you know, something like yahoo mail...
Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:13AM (#1815756)
run amazing free services (search, Gmail, Google Earth, Google Maps, Google Finance, Google News, Google Voice, Google Reader, Feedburner, many many others). Also, they're internally investing in energy and robotics like the auto-driven cars thing

None of those products/services would be possible but for the government spending taxpayer money to develop the infrastructure behind those services (the internet, roads, GPS, etc).

Re:The Tax Haven That's Saving Google Billions by ataggart on Thursday October 21, 2010 @11:25AM (#1815827)
>None of those products/services would be possible but for the government spending taxpayer money...

This is sloppy reasoning. Just because A contributed in some measure to B does not imply B could only have come about because of the contributions of A, nor does it imply that more of A will yield more Bs.

Further, absent a parallel world in which such different choices were made, one could just as easily argue on economic grounds that the resources confiscated would have been otherwise put to more effective, productive use in satisfying the wants of the common man.

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @11:58AM (#1816013)
Although Sebastian's original post stopped just short of doing so, it would be equally sloppy to suggest that Google's ability to come up with amazing free (but profitable) services was a consequence of their tax avoidance.
Re:The Tax Haven That's Saving Google Billions by chc on Thursday October 21, 2010 @01:00PM (#1816364)
Only because calling it "tax avoidance" is overspecifying. Google's ability to come up with amazing free services without immediate profitability is a consequence of their considerable post-tax revenue.
Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:53AM (#1815989)
Just because A contributed in some measure to B does not imply B could only have come about because of the contributions of A, nor does it imply that more of A will yield more Bs.

I'm not saying that at all. Google can offer the services that it does because it can ride on the back of the infrastructure developed beforehand and the taxes we pay now will enable future entrepreneurs to provide services utilizing potentially different infrastructure.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @11:26AM (#1815831)
> None of those products/services would be possible but for the government spending taxpayer money to develop the infrastructure behind those services (the internet, roads, GPS, etc).

I'd argue that the infrastructure would have been built regardless.

Re:The Tax Haven That's Saving Google Billions by Anechoic on Thursday October 21, 2010 @11:58AM (#1816015)
I'd argue that the infrastructure would have been built regardless.

It would likely be very different than the relatively free/open roads, GPS and internet we have today.

The "internet" would likely be similar to the mesh of networks we had back in the '90's (eWorld/AOL, Compuserve, Prodigy, the proposed Microsoft Blackbird/MSN strategy) and who knows if they would have played well with each other.

Roads would be toll roads each with their own restrictions (and I'm sure some enterprising roadway operator would block self-driven cars or charge them higher fees because they good).

And does anyone believe that a privately developed GPS system would be anything but horribly expensive or unreliably? Just look at satellite telephone. Satellite TV and radio have more reasonable cost structures, but they're partially underwritten by advertiser fees.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @12:27PM (#1816151)
> It would likely be very different than the relatively free/open roads, GPS and internet we have today.

Oh, I'm in violent agreement with you on this one.

"The infrastructure" in my comment is meant to refer to something roughly comparable to our current infrastructure. For example, if the government didn't build roads, something would fill the void of a service that facilitates transportation -- not necessarily roads.

> And does anyone believe that a privately developed GPS system would be anything but horribly expensive or unreliably? Just look at satellite telephone.

Remember, public infrastructure isn't free. No infrastructure, no taxes for infrastructure, more money, which one could choose to spend on an expensive satellite phone. It's certainly not that simple, but that's my general point.

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @11:44AM (#1815931)
Perhaps the infrastructure would have been built, but I think you'd be surprised at the amount of basic fundamental research the government does that enables the infrastructure. Most corporations don't do what the US Feds call "R06" research, meaning there is no current application for the results. Pure research, others might call it.

My current field, public health, is an example. The US Gov't spends billions into research that doesn't lead to tangible products or services. But without it, we wouldn't know that cigarettes are bad, or that heart disease is correlated with red meat consumption.

There are lots of non-infrastructure advantages that exist only because the government has tax money.

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @01:37PM (#1816559)
> There are lots of non-infrastructure advantages that exist only because the government has tax money.

I'd posit that, for many of these advantages, government is not a necessary cause. That is to say, these non-infrastructure advantages can exist independent of government.

> But without it, we wouldn't know that cigarettes are bad...

This is demonstrably false.

"In 1938 a study by a John Hopkins University scientist suggested a strongly negative correlation between smoking and lifespan."[1][2]

"In 1953 scientists at the Sloan-Kettering Institute in New York City demonstrated that cigarette tar painted on the skin of mice caused fatal cancers."[3]

The Sloan-Kettering Institute is by and large funded by the Rockefeller family.[4]

> "or that heart disease is correlated with red meat consumption."

The original research supporting this is, in fact, from a government institute. However, the study has been criticized using an improperly validated food frequency questionnaire[5], which has been shown to have low accuracy.[6][7] A later Harvard study found evidence that it's processed meat that causes heart disease, not red meat.[8]

> The US Gov't spends billions into research that doesn't lead to tangible products or services.

I'm constantly amazed at how many products came out of the space race. Enriched baby food, scratch resistant glasses, advances in water purification, even more aerodynamic golf balls! It's truly marvelous.

[1]http://www.sciencemag.org/cgi/reprint/87/2253/216?ijkey=ecbc...

[2] John Hopkins is a private university, but they receive a not insignificant amount of funding from the government in the form of tax breaks, grants, etc. I think it's fair to say that this study, however, originated in the private sector.

[3]http://en.wikipedia.org/wiki/Health_effects_of_tobacco#cite_...

[4]http://www.smokershistory.com/MSKCC.htm

[5]http://en.wikipedia.org/wiki/Red_meat#cite_note-19

[6]http://en.wikipedia.org/wiki/Red_meat#cite_note-20

[7]http://en.wikipedia.org/wiki/Red_meat#cite_note-21

[8]http://online.wsj.com/article/SB1000142405274870431490457525...

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @02:43PM (#1816873)
I understand your counterpoints. And I'd like to thank you for taking the time to research and cite all of this -- I truly had no idea of the private money behind some of this research.

However, after further consideration I don't think the tobacco-cancer example was a particularly good one for me to bring up. It was highly controversial in the epi/stats community for many years, mainly because RA Fischer (the father of applied statistics) never believed in the validity of the tests. While I'm sure we could each pick studies that backed the public/private side of things, the truth is that there just wasn't a consensus (about cigarettes) until Congress started investigating. So it's probably not the best topic for me to have brought up.

Re:The Tax Haven That's Saving Google Billions by ramanujan on Thursday October 21, 2010 @02:49PM (#1816907)
To state what is perhaps obvious, scientific research and invention flourished before the modern, post WW2 world of state sponsored research.

Given things like the Broad Institue, the Allen Brain Atlas, Microsoft Research, the Google guys' funding of the Singularity Institute, DE Shaw's funding of protein folding, etc. it's pretty clear that billions in private money is spent on R06 research.

It's also not clear that the current system of indentured servitude for grad students and postdocs is optimal. Frankly, in biomedicine, it's the top 10-20 places (and really the top 5) that primarily invent and discover new stuff, as quantified by citation rates[1].

By contrast, a PhD from Directional State is unlikely to do so, and the government funding him or her at the same rate as an MIT scientist is a distortion which is less likely to occur when funding is controlled by individuals rather than politicians with an interest in pork. In the absence of government funding, said marginal PhD candidate would find productive employ as an engineer or scientist in the real economy. (I say all this as a lifelong academic!)

[1] Perhaps the ultimate proof of bibliometry's utility is that it was the inspiration for PageRank.

Re:The Tax Haven That's Saving Google Billions by WalterBright on Thursday October 21, 2010 @01:35PM (#1816550)
Anybody who dissected a smoker knew it was bad for you (ever seen a smoker's lung? I have. Horrific). Even in the 20's cigarettes were called "coffin nails", and doctors routinely advised their patients to quit smoking.

Epidemiological studies have been carried out since the early 1800's.

Re:The Tax Haven That's Saving Google Billions by Travis on Thursday October 21, 2010 @02:46PM (#1816892)
Counterpoint: well into the 1950s, doctors would routinely endorse cigarettes with menthol because they "cleared up your lungs." Even R.A. Fischer, the man who started modern applied statistics, died in 1962 believing that the conclusions drawn from cig studies were at best inconclusive and bad science.

And I'm curious if you could give me examples of a few epi studies that were done before Fisher's time. I was under the impression that he started everything to do with statistics (and that the field didn't really blossom until we could compute the coefficients digitally. Read "The lady tasting tea" for more background on the origins of this stuff).

Re:The Tax Haven That's Saving Google Billions by dennisgorelik on Thursday October 21, 2010 @11:32AM (#1815867)
Judging from this downvoted comment -- this discussion is overtaken by libertarian crowd (which I'm part of). Still it's not a good idea to down-vote comments that you do not agree with. Down-voting is intended for boring/offensive comments which you do not want to see in further discussions.
Re:The Tax Haven That's Saving Google Billions by gruseom on Thursday October 21, 2010 @12:33PM (#1816185)
Downvoting is a legitimate way to disagree when you don't have time or anything useful to say. It's not true that it was intended only for the cases you describe. This is one of those debates (like the decline of HN relative to Reddit) that will never go away despite the fact that it is settled.

That said, I think it's pretty foolish to downvote Anechoic's argument, which is cogent and grounded in historical fact. I don't see how anyone can argue against the role of the public sector in creating major technological infrastructure on a bloody internet forum.

Re:The Tax Haven That's Saving Google Billions by jacoblyles on Thursday October 21, 2010 @03:05PM (#1816975)
I feel fine downvoting comments with high scores that I disagree with, especially if there is no particularly strong argument in them. If they have low score then I leave them alone.
Re:The Tax Haven That's Saving Google Billions by hugh3 on Thursday October 21, 2010 @11:16AM (#1815780)
Personally, I think that if infrastructure (rather than wealth redistribution) were really the main business of government then I wouldn't have any objection to paying taxes.

I'm sure that GOOG pays enough taxes in one way or another to pay for its fair share of the world's roads. This is more than I can say for the bum sitting on the street corner.

Re:The Tax Haven That's Saving Google Billions by lsc on Thursday October 21, 2010 @02:18PM (#1816771)
my problem with it is not so much that google is paying fewer taxes, but that this complex tax structure encourages "innovation" in tax avoidance rather than innovation in things that actually create value.

How much money goes into building and checking the legality of those tax avoidance schemes? a lot, I bet. I'm fairly certain, for example, that my company would not be able to afford something like that.

A simpler tax law not only makes things more fair (maybe it's just sour grapes, but I don't think it's fair that there is one tax rate for corps like mine, who have one part-time accountant, and another, much lower tax rate for giant corporations that can afford massive teams of tax lawyers.) but it makes the economy more efficient. The goal of closing those loopholes should be to make it in Google's best interest to spend their effort on, say, improving search rather than avoiding taxes.

Re:The Tax Haven That's Saving Google Billions by jdietrich on Thursday October 21, 2010 @11:35AM (#1815881)
It's a curious thought, but I actually think I'd prefer to be a subject of Google than Her Majesty's Government. Larry, Sergei, if you're reading - please make a bid for UK PLC. It's weighed down with debts and the current management are a shower of shite, but the headquarters are pretty swanky and I hear there are some great engineers on the payroll in Cambridge.
Re:The Tax Haven That's Saving Google Billions by eru on Thursday October 21, 2010 @11:52AM (#1815987)
But we are not on the payroll of the Queen in Cambridge.
Re:The Tax Haven That's Saving Google Billions by rdtsc on Thursday October 21, 2010 @12:07PM (#1816048)
That is a very common idea among right-wing Americans -- they'd rather have companies take care of us than the government. The government is wasteful and full of beaurocrats. Let Walmart, P&G, and Monstanto clothe, wash and feed rather than the beaurocrats in Washington.

I guess the idea is that many educated and informed consumers will pick among the best companies and competition will drive the costs down.

Re:The Tax Haven That's Saving Google Billions by philwelch on Thursday October 21, 2010 @12:38PM (#1816228)
That is a very common idea among right-wing Americans -- they'd rather have companies take care of us than the government.

No, right-wing Americans want to take care of themselves. They would just rather freely pay for certain services (health care, for instance) from competing private firms than be provided it by the government.

Framing the question as "who will clothe and feed and wash us" is implicitly a leftist framing. Taken literally, it rises to absurdity--physically, most people clothe and feed and wash themselves, and even more generally, it's hard to name a successful country where the government provides most people with clothing, food, or soap (though I'll grant the running water).

Re:The Tax Haven That's Saving Google Billions by rdtsc on Thursday October 21, 2010 @02:01PM (#1816681)
> most people clothe and feed and wash themselves

How so? Most don't own the means to produce all those things.

Most people buy those goods and choose between a range of available products. The fundamental flaw with that (at least as far as I see) is what happens if the products are unsafe. Imagine that FDA wasn't there (or its European equivalent) and companies could sell you anything whatsoever as food. How often have you gone shopping with a pestiside testing kid, a bacterial testing kit and a geiger counter? How do you know that all 15 type of shampoo you can buy don't all have mercury in them?

Basically both extremes don't work. A completely planned economy will not work but I have not seen a liberatrian utopia either so far.

The one advantage of the government is that at least in theory you can cast a vote to effect some change. You could not do that if you are run by Google.

Maybe I don't like Gmail and Gmail is the only mail in town, I can't force Google to change it. But can at least attempt to call my congressman if I don't like a particular upcoming bill.

Re:The Tax Haven That's Saving Google Billions by jimmyk on Thursday October 21, 2010 @02:35PM (#1816837)
>Imagine that FDA wasn't there (or its European equivalent) and companies could sell you anything whatsoever as food. How often have you gone shopping with a pestiside testing kid, a bacterial testing kit and a geiger counter? How do you know that all 15 type of shampoo you can buy don't all have mercury in them?

Why does it have to be a government agency that's doing the testing? What's to stop a private company with a trusted brand from doing the testing and giving its stamp of approval? Their motivation to keep bad products from slipping through is very strong because their brand is their worth.

It is useful to note that it was the meat packers who lobbied the government for the creation of what became the FDA because they knew that the public would require some testing and the FDA would do it for little money. A private brand would of course have to charge more.

>Maybe I don't like Gmail and Gmail is the only mail in town, I can't force Google to change it. But can at least attempt to call my congressman if I don't like a particular upcoming bill.

If you don't like GMail, you can write your own email service. If enough people don't like it, odds are someone will have already written a competing service. Google cannot stop you from doing that. A government, however, can.

Re:The Tax Haven That's Saving Google Billions by dgabriel on Friday October 22, 2010 @11:52AM (#1820106)
I guess the only problem with a private company instead of a governmental regulatory agency ensuring product safety is that the risk will mostly be born by the poor. Anyone unable to purchase a product tested by a private company with a good seal will be protected by nothing and nobody (not that they're always protected now).

Of course, I think there's a middle ground. Too much government regulation is terrible for everyone, but too little disparately impacts those of little means.

Re:The Tax Haven That's Saving Google Billions by philwelch on Thursday October 21, 2010 @04:38PM (#1817342)
I'm not stating a point here, just describing how some people view things. If you want to argue with a right-wing American, find someone else.
Re:The Tax Haven That's Saving Google Billions by MalUK on Thursday October 21, 2010 @11:36AM (#1815890)
Why is England mentioned in this comment? Google Ireland is based in the Republic of Ireland, which is not related to England.
Re:The Tax Haven That's Saving Google Billions by gaius on Thursday October 21, 2010 @11:53AM (#1815994)
Because Google uses Ireland to avoid paying tax on revenues earned in England.
Re:The Tax Haven That's Saving Google Billions by MalUK on Thursday October 21, 2010 @12:04PM (#1816037)
That's not really an issue. Businesses in the EU are mostly taxed at their base, so it's up to them which country they choose. The problem is the use of the Netherlands to funnel the cash, which means the tax revenue is escaping the EU.

Effectively, they have set up shop in an EU country, they are enjoying the benefits like infrastructure, state educated population, health care, and are allegedly paying practically nothing for it.

Re:The Tax Haven That's Saving Google Billions by SeamusBrady on Thursday October 21, 2010 @11:54AM (#1815998)
Whoops! Well spotted. Somebody committed a political faux pas there. All these wet rainy island nations in the North Atlantic tend to blur together obviously...

It is interesting for me as an Irish person to see this brought up as our government (a sorry lot) are under huge pressure to keep jobs and money in the country. Putting this under the spotlight is the last thing they need. Our economy is in a pretty poor state.

Re:The Tax Haven That's Saving Google Billions by loumf on Thursday October 21, 2010 @10:59AM (#1815679)
It's neither good nor evil. Google's board and executives are legally obligated to maximize shareholder value. Shareholders can sue otherwise. If governments want more tax, they should close loopholes and Google will comply with the law.
Re:The Tax Haven That's Saving Google Billions by tow21 on Thursday October 21, 2010 @11:33AM (#1815871)
"Google's board and executives are legally obligated to maximize shareholder value. Shareholders can sue otherwise."

Common fallacy. No they're not, and no they can't. See, eg

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1013744

Re:The Tax Haven That's Saving Google Billions by RickHull on Thursday October 21, 2010 @11:55AM (#1816004)
Are you saying that a corporation does not have a fiduciary duty to its shareholders?

That paper just expresses a limitation of conclusions that can be drawn from a single case, Dodge v Ford.

Re:The Tax Haven That's Saving Google Billions by rdouble on Thursday October 21, 2010 @12:14PM (#1816085)
This is a counter to the commonly espoused internet-forum notion that there's some law corporations would be breaking if they don't engage in the most sociopathic behavior possible in order to "maximize shareholder value". There is in fact no such law. Bringing up Dodge vs. Ford is relevant, because that is indeed where the concept of "maximizing shareholder value" was brought up, and it's the only case ever cited.

The notion that shareholders can bring about a suit in the United States because Google is not dodging enough taxes enough is absurd.

Re:The Tax Haven That's Saving Google Billions by RickHull on Thursday October 21, 2010 @12:14PM (#1816090)
What is the extent of a corporation's fiduciary duty to its shareholders then?

See http://en.wikipedia.org/wiki/Fiduciary#Relationships

Under Corporation-Stockholders, Dodge v Ford is not cited.

Re:The Tax Haven That's Saving Google Billions by rdouble on Thursday October 21, 2010 @12:17PM (#1816098)
A corporation has no LEGAL fiduciary duty to "maximize shareholder value," that is just a business "best practice."

There are actual corporate laws regarding shares and shareholders and corporate boards and whatnot, but they are mostly about trying to keep the game clean and not defrauding people, not "maximizing shareholder value."

Edit: So long as we're referencing wikipedia...

http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company

"Dodge is often misread or mistaught as setting a legal rule of shareholder wealth maximization. This was not and is not the law. Shareholder wealth maximization is a standard of conduct for officers and directors, not a legal mandate. "

It's actually a very interesting case, because the DODGE in Dodge vs. Ford is actually the guys behind the Dodge motors brand. They were using their investment in Ford motors to make money in order to start their own competing car company.

Re:The Tax Haven That's Saving Google Billions by anigbrowl on Thursday October 21, 2010 @07:29PM (#1817891)
The broader question is whether that fiduciary duty is best served by maximizing short-term profits or long-term reliability (including abstractions such as goodwill and a stable regulatory environment).
Re:The Tax Haven That's Saving Google Billions by dennisgorelik on Thursday October 21, 2010 @11:28AM (#1815845)
Government should focus on trimming expenses instead of raising taxes.

Google's shareholders deserve part of Google's profit much more than US government.

Shifting money from government to shareholders increases likelihood of further innovations.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @10:38AM (#1815553)
Well, it's up to England's citizens to change the efficiency of England's government. Google is doing great things. By but dodging its taxes, it is forcing ordinary citizens to pay more. Or make do with less.

It doesn't matter whether it would do better with the money. I think I could do better with my tax money than the US government. But then, that's not my choice to make. My job is to work to make sure that the US government does better with my tax money. Not to deny the government the money. If I don't pay, someone else will have to. And that's not okay.

It's like saying I need your sandwich more than you do. I'm hungrier, I could make better use of it, therefor I should get your sandwich. Even if I could legally take your sandwich. It's still not okay. It's your sandwich! If I take it, you go hungry.

Re:The Tax Haven That's Saving Google Billions by lionhearted on Thursday October 21, 2010 @10:42AM (#1815573)
> By but dodging its taxes, it is forcing ordinary citizens to pay more. Or make do with less.

See, I'd disagree with you and say the opposite. I think England taking money from Google would mean less infrastructure and research out there in the world, meaning common citizens would be forced to pay more for services instead of Google's free services, or make do with less.

> I think I could do better with my tax money than the US government. But then, that's not my choice to make.

I believe it should be. Really, I mean that, I think taxes on productive labor are evil. Really, actually, unmitigated evil. I'm not against taxes, I'd actually be in favor for high property taxes divided split between federal, state, and local, which would encourage economy of space, reduce waste, and discourage real estate speculation while encouraging development. High taxes are okay. But taxing earned income, no way. Demanding a percent of honest labor to me seems no different than claiming ownership over a percent of a man. I think it's tyranny, and that in the future people will look horrified at income taxes the way we look at feudalism, serfdom, slavery, and other forced claims over a man's labor. But I understand I'm currently in the minority on that point of view.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @10:48AM (#1815606)
What if my income is $250 million? It still evil for the government to claim a percentage of that to provide services?
Re:The Tax Haven That's Saving Google Billions by lionhearted on Thursday October 21, 2010 @10:55AM (#1815657)
> What if my income is $250 million? It still evil for the government to claim a percentage of that to provide services?

To make $250 million honestly, you'd have to produce value far in excess of $250 million. And yes, taxing people for producing value with their own labor is wrong to me. This is not an argument that all taxation is bad. You need taxes to run society. But taxing earned income seems wrong to me - the government doesn't own you, nor does it own your labor. I believe that. It's your life, you own it, and you own the product of your hands and mind. You should pay for the property you use, which effectively means you're paying for wherever you receive services. Wealthier people tend to use more property, meaning they pay more naturally. This seems sensible to me. Claiming ownership over a man's labor does not seem sensible to me.

Re:The Tax Haven That's Saving Google Billions by notahacker on Thursday October 21, 2010 @12:13PM (#1816081)
The government provides services which are pretty fundamental to Google's success including enforcement of Google's various property rights (including IP) and providing a stable environment in which to do business. Surely the value of that service is broadly proportional to Google's income and well in excess of 2.4%
Re:The Tax Haven That's Saving Google Billions by Retric on Thursday October 21, 2010 @11:20AM (#1815792)
Edit: Fixed, sorry had a bad copy and paste.

You sit at home and come up with a great new piece of software that’s worth 250 million and sell it IBM. Why should you pay more taxes than the bum sitting at home next door? After all you did not use land or resources protected by your countries military and police forces. You did not use public infrastructure (roads, bridges, dams) or government backed institutions (banks, phone lines), or even workers or customers educated by the public school system.

Ask yourself why would IBM pay for such a thing? Well they have customers that use land and an educated workforce. And what about your bank? How do they keep from being robbed? Heck, what’s to stop your bank or IBM from simply shooting you vs. letting you keep the money?

Face it, without a government service there is no way to generate extract and keep 250 million in value. Because even Drug Lords depend on governments banning their drugs.

PS: If you disagree you can always leave and renounce citizenship.

Re:The Tax Haven That's Saving Google Billions by lionhearted on Thursday October 21, 2010 @11:32AM (#1815868)
Edit: You completed edited your comment since I replied... the new version is a lot more reasonable. Here's what I originally wrote, which doesn't 100% apply any more:

Did you actually read my comment? I think you're reacting to something I didn't say - taxes are fine, and you'd wind up paying for services you use in property taxes.

Land, resources, military, police, roads, bridges, dams, banks (really shouldn't be government provided as that causes all sorts of problems like we've recently seen, but that's a side discussion), schools - those are all local-based services. You'd pay for where you were using them, when you were using them.

> PS: If you disagree you can always leave and renounce citizenship.

Totally unnecessary and counterproductive to a decent reasonable discussion.

Re:The Tax Haven That's Saving Google Billions by Retric on Thursday October 21, 2010 @12:10PM (#1816067)
Yea, sorry I messed up the comment in editing and had the "After all you" stuff twice.

Anyway, I wonder what your thoughts are on the central idea. Mainly our ability to generate value is directly related to the value the government provides us. The ability to walk the streets unmolested is hard to quantify but the economic value is directly related to our income. Also, murder investigations are independent of the amount of land we own. And things like food safety and public vaccinations are cheap and valuable so bundling all of that stuff up and simply taxing income seems more reasonable than trying to have individual taxes on every transaction with the government.

As to leaving I think that's an important option. It's what separates slaves of the state from people that can accept the deal or move on. A young talented American can has many options for relocation to another area, the fact that so few do suggests our system has many benefits even if they are not all obvious.

Re:The Tax Haven That's Saving Google Billions by zooey on Thursday October 21, 2010 @04:20PM (#1817277)
Banks are not government provided. They are private. And all the time saying that is Government fault when the market turn to shit, it means that it is not science just something you want to be true, no matter what.

If something can't be proved false, you know...

Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @11:43AM (#1815928)
> PS: If you disagree you can always leave and renounce citizenship.

I see this argument all the time: "If you don't like it, leave." While that's always an option, I think it's disingenuous to suggest that's the best option or even a reasonable one.

This is a democracy! You can affect change in your government. Get out there and vote, run for office. You don't have to just lie down and accept things the way they are.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @11:25AM (#1815829)
First off, I don't care who you are or what you do. No single individual creates that much value. A CEO makes big decisions, sure. But he receives advice from countless people on those decisions, and countless more people make those decisions a reality. Companies create value through the actions of hundreds if not thousands of people. The decisions of its well paid leaders are more valuable than the actions of the average worker on the factory floor, but not that much more valuable.

No CEO could possibly make decisions more important, more weighty or more valuable than the leaders of nations. And the leaders of nations make an order of magnitude less than the average big company CEO.

So no, I wouldn't produce value far in excess of $250 million. I would be getting paid way too much.

Second how long did you take advantage of government services before you became a productive citizen? What did you get from it?

Let's assume England. Just off the top of my head - for the first 14-21 years of your life you got: health care, a primary and secondary education, protection of the military, a higher education, use of the roads, clean water, clean air, sewage, trash removal and the BBC.

How much do you think you owe the government for 14 years of the use of those services? How much interest do you think you're paying on that debt? How about for the continuing use of those services?

Income tax is not the government claiming ownership over a man's labor, it is simply the minimum payment on a debt and the fee for continuing use of services.

Re:The Tax Haven That's Saving Google Billions by lionhearted on Thursday October 21, 2010 @11:45AM (#1815946)
> First off, I don't care who you are or what you do. No single individual creates that much value. A CEO makes big decisions, sure.

Do you know any CEOs in the mold you're describing? I know... one. He was VP running one division of a company that was flagging, actually the whole company was flagging. He systematically promoted, trained, recruited, and refocused his division, until it became 80% of the company's revenues, and 2/5ths of the rest of the company was closed off. He massively grew the company. He took over for a very smart guy who, for whatever reason, was slowly running the company into the ground. The company literally wouldn't exist without him, and not many others have that skillset. He doesn't make $250 mil, but he's worth everything he makes. The company wouldn't exist without him.

> But he receives advice from countless people on those decisions,

Who get paid for that role.

> and countless more people make those decisions a reality.

Who also get paid for that role.

> Companies create value through the actions of hundreds if not thousands of people.

...who also get paid for that role.

> The decisions of its well paid leaders are more valuable than the actions of the average worker on the factory floor, but not that much more valuable.

Executives don't get paid a massive amount out of their boss's benevolence... they get paid because it's a brutally hard, rare skillset that not many people can do. A good executive absolutely can be the difference between making billions of dollars or the company failing and going out of business.

> So no, I wouldn't produce value far in excess of $250 million. I would be getting paid way too much.

You're either underestimating how hard being a good executive is or underestimating how much value a good executive can create. How much would it be worth to Yahoo to have had better leadership? How much has Steve Jobs brought in value to Apple? How much would Yahoo be willing to pay Jobs to take over? Would he be worth it?

> Second how long did you take advantage of government services before you became a productive citizen? ... How much interest do you think you're paying on that debt?

In every other sphere, you can't sign contracts to be indebted to someone before you're mature enough to commit to them. Because the government provided a service to a 5 year old doesn't mean the government can assert any ownership over the child later. Think about if Nike gave you shoes, clothes, and food when you were younger, and then said you owed something later. It's ridiculous. People can't sign their life away before they know what they're signing.

> Income tax is not the government claiming ownership over a man's labor, it is simply the minimum payment on a debt and the fee for continuing use of services.

I agree that you should pay for the services you use. But the government isn't charging for services, they're saying that when you do productive labor, then you owe them money. Big difference. I disagree with that. The debt notion is crazy to me, you can't go in debt as a minor for something you didn't agree to it. It used to be that if someone provided services to you as a child, you'd become indebted or enslaved to them, but thankfully we got rid of that. The fact that you can't sign contracts until you're old enough to understand them is pretty clearly established in Western thought, and a good thing.

Look, I'm not against taxes. Services must be paid for, agreed. Just not out of your labor. You should never incur a tax for doing productive, honest work with your hands or mind. It's immoral to claim a share of a man's labor by force. By all means, charge for services. But you own your life and your labor.

Edit: Gotta head out, the cafe I'm at is closing (11 at night here). If you're actually interested in discussion, feel free to email me - this has been good fleshing out my thoughts more clearly on paper, and I've enjoyed the discussion. Email's in my profile.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @10:07PM (#1818310)
I'd be happy to continue on email. I've enjoyed it too. It's always good to have a foil. With out them, we never learn :)
Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @10:25PM (#1818354)
Heh, posting the executives make too much money in a business oriented forum is bound to be unpopular. shrug

Look at the people actually taking salaries that high. They're the financial industry executives who just ran their companies into the ground and had to be bailed out. Look at the people actually creating tons of value. The people who are heros to most of the people on HN. Steve Jobs has a salary of $1. So do Larry Page and Sergey Brin.

Good executives do not think so highly of themselves that they pay themselves that much more than their employees. Granted, the people in question can afford to do this because they are wealthy in stock and dividends.

Re:The Tax Haven That's Saving Google Billions by philwelch on Thursday October 21, 2010 @12:55PM (#1816333)
So you've never claimed tax deductions or used a 401(k) or IRA, or ever had health insurance from your employer? Those are all legal ways of "dodging" taxes.

If the government wants to collect more tax, the government can close tax incentives. There's no individual duty not to exploit tax incentives if they're open to you.

Re:The Tax Haven That's Saving Google Billions by dbingham on Friday October 22, 2010 @12:06AM (#1818536)
Incentive deductions are very different from loopholes. Loopholes are bugs in the law. Sometimes put their intentionally by people who don't agree with the spirit of the law, sometimes there accidentally. But either way, they go against the spirit of law and are the equivalent of a software bug.

Incentives were put there intentionally and using them is following the spirit of the law.

Re:The Tax Haven That's Saving Google Billions by jasonlotito on Thursday October 21, 2010 @10:51AM (#1815626)
Your sandwich analogy is backwards. In your example, you would be the government, and it's Google's sandwich.

If the government wants Google to pay taxes, they should enact laws that establish that. It's as simple as that.

> I think I could do better with my tax money than the US government. But then, that's not my choice to make.

At least, it's not your choice to make yourself. When you agree to live in a certain place, you generally have to play by the rules.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @10:41PM (#1818378)
A loophole by definition is a problem with a law that allows people to break the spirit of the law while not breaking the letter of it.

Writing laws is like programming. There are bugs. But its even harder than programming because fixing the bugs isn't as simple as finding the spot in the code and releasing a patch. It means bringing the laws back up for discussion and debating with 100+ other people about the best way to fix the bug. And not all those people actually have fixing the bug in mind. So it isn't as simple as the government enacting laws to close the loopholes.

By taking advantage of the loopholes like this Google is acting like black hat hackers who take advantage of the bugs. They are taking advantage of the bug in the government's code that allows them to use the government's services with out paying for them.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @12:07PM (#1816050)
In the analogy it's not the government who's sandwich Google is taking -- its the average citizen. The government is just a proxy organization representing the citizens in a much more direct way than a company represents its stock holders.
Re:The Tax Haven That's Saving Google Billions by adbge on Thursday October 21, 2010 @11:34AM (#1815878)
> It's like saying I need your sandwich more than you do. I'm hungrier, I could make better use of it, therefore I should get your sandwich. Even if I could legally take your sandwich. It's still not okay. It's your sandwich! If I take it, you go hungry.

Really, the same reasoning could be applied to the government with regards to taxation.

Re:The Tax Haven That's Saving Google Billions by dbingham on Thursday October 21, 2010 @12:08PM (#1816057)
See comment below. In the analogy "I" am Google and "you" is the average citizen who has to pay more as a result of Google's tax avoidance. Not the government.
Re:The Tax Haven That's Saving Google Billions by rbranson on Thursday October 21, 2010 @10:35AM (#1815537)
Obviously we should always look at large companies with skepticism, but Google is clearly building a long-term brand and trying to generate goodwill by investing in massive R&D efforts. This is rare among large companies. Most seem focused on the quarterly report. If they were IBM or Oracle, who undoubtedly have similar practices, perhaps I might feel a little more betrayed. I still believe Google, for the most part, is not evil.

Thankfully though, we are a nation of laws. As much as I despise the practices of some businesses, I am perfectly happy that it's not any one person's single opinion that keeps these companies in business.

Re:The Tax Haven That's Saving Google Billions by A1kmm on Thursday October 21, 2010 @03:25PM (#1817063)
Company taxes are, in most parts of the world, levied on company profits, not company revenues. So if Google paid higher taxes, company expenditure would be the same, but dividends and / or share price would be lower. So the only point that still stands is 'giving liquidity to founders'; I'm sure the founders already have enough capital to bootstrap practically any innovative tech business they want.